SB366-SSA1,2,52 20.566 (3) (go) Reciprocity agreement, Illinois. The amounts in the schedule
3to provide services for the Illinois income tax reciprocity agreement under s. 71.10
4(7e). All moneys received by the department of revenue in return for the provision
5of these services shall be credited to this appropriation.

SB366-SSA1,2,107 20.855 (4) (cm) Illinois income tax reciprocity. For taxable years beginning
8after December 31, 1999, a sum sufficient to pay to the state of Illinois any losses of
9income taxes occurring because of income tax reciprocity between this state and
10Illinois and any interest payments due under s. 71.10 (7e).

SB366-SSA1,2,1412 20.855 (4) (cn) Illinois income tax reciprocity bench mark. The amounts in the
13schedule to fund this state's portion of a bench mark study by the department of
14revenue of the revenue loss under s. 71.10 (7e) (b).

SB366-SSA1,3,216 20.855 (4) (co) Illinois income tax reciprocity, 1998 and 1999. The amounts in
17the schedule to pay to the state of Illinois any losses of income taxes occurring
18because of income tax reciprocity between this state and Illinois, as determined

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1under s. 71.10 (7e), for taxable years beginning after December 31, 1997, and before
2January 1, 2000.

SB366-SSA1,3,134 71.10 (7e) Illinois income tax reciprocity. (a) For purposes of income tax
5reciprocity reached with the state of Illinois under s. 71.05 (2), whenever the income
6taxes on residents of one state which would have been paid to the 2nd state without
7reciprocity exceed the income taxes on residents of the 2nd state which would have
8been paid to the first state without reciprocity, the state with the net revenue loss
9shall receive from the other state the amount of the loss. Interest shall be payable
10on all delinquent balances relating to taxable years beginning after December 31,
111999. The secretary of revenue may enter into agreements with the state of Illinois
12specifying the reciprocity payment due date, conditions constituting delinquency,
13interest rates and the method of computing interest due on any delinquent amounts.

SB366-SSA1,3,2514 (b) The data used for computing the loss to either state shall be determined by
15the respective departments of revenue of both states on or before December 1 of the
16year following the close of the previous calendar year. If an agreement cannot be
17reached as to the amount of the loss, the secretary of revenue of this state and the
18director of taxation of the state of Illinois shall each appoint a member of a board of
19arbitration and these members shall appoint a 3rd member of the board. The board
20shall select one of its members as chairperson. The board may administer oaths, take
21testimony, subpoena witnesses and require their attendance, require the production
22of books, papers and documents and hold hearings at such places as it considers
23necessary. The board shall then make a determination as to the amount to be paid
24the other state which shall be conclusive. This state shall pay no more than 50% of
25the cost of such arbitration.

SB366-SSA1,4,4

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1(c) 1. The payments under this subsection may be made only if the secretary
2of revenue of this state and the director of taxation of the state of Illinois enter into
3a written agreement relating to income tax reciprocity that applies to taxable years
4beginning after December 31, 1997.

SB366-SSA1,4,95 2. Subject to subd. 1., for taxable years beginning after December 31, 1997, and
6before January 1, 1999, the maximum amount that may be paid to Illinois under this
7subsection is $5,500,000, and for taxable years beginning after December 31, 1998,
8and before January 1, 2000, the maximum amount that may be paid to Illinois under
9this subsection is $8,250,000.

SB366-SSA1,4,1412 71.78 (4) (h) 2. A member of the board of arbitration established under s. 71.10
13(7e) or a consultant under joint contract with the states of Illinois and Wisconsin for
14the purpose of determining the reciprocity loss to which either state is entitled.